Tata Nano- a Blue Ocean
TATA NANO- A BLUE OCEAN | December 10
2010
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Background
Between 1970 and 1984 cars were considered a luxury product; manufacturing was licensed, manufacturing was restricted; there were quantitative restrictions on import and a tariff structure designed to restrict the market. The market was dominated by 6 manufacturers - Telco (now Tata motors), Ashok Leyland, Mahindra & Mahindra, Hindustan motors, Premier automobiles and Bajaj auto.
The decade of 1985 to 1995 saw the entry of Maruti Udyog in the passenger car segment. Economic liberalization, started in 1991, led to the delicensing of passenger car segment in 1993. This decade witnessed emergence of Hero Honda as major player in two wheelers and Maruti Udyog as the market leader in the passenger car segment.
Situation in 2004-2005
The Indian automobile industry produced 8.5 million vehicles in 2004-05. During the financial year 2005-06, Indian automobile industry produced more than 9.5 million vehicles. The growth in production was 15%. Sale of passenger cars and utility vehicles has grown at 12% CAGR over the last decade.
Two wheeler sales have grown at 11% CAGR during the last decade. Over the years sales of motor cycles has increased while sale of scooters and moped stagnated. With 5.82 million units sold in 2005-06(out of 7 million 2 wheelers), motorcycles replaced scooters as the preferred mode of transport. Visual Awakening (assessing the current environment)
Factors market is currently competing on: 1. Fuel Efficiency 2. Price 3. Size 4. Design 5. Driving Pleasure 6. Passenger comfort 7. Durability 8. Engine Power BHP 9. Engine efficiency 10. Interior looks 11. Interior upholstery 12. Latest features 13. Colour variants 14. After Sales service 15. Spare Parts 16. Safety features
Major Players: The below diagram shows the major players in the passenger car industry and
2010
| |
Background
Between 1970 and 1984 cars were considered a luxury product; manufacturing was licensed, manufacturing was restricted; there were quantitative restrictions on import and a tariff structure designed to restrict the market. The market was dominated by 6 manufacturers - Telco (now Tata motors), Ashok Leyland, Mahindra & Mahindra, Hindustan motors, Premier automobiles and Bajaj auto.
The decade of 1985 to 1995 saw the entry of Maruti Udyog in the passenger car segment. Economic liberalization, started in 1991, led to the delicensing of passenger car segment in 1993. This decade witnessed emergence of Hero Honda as major player in two wheelers and Maruti Udyog as the market leader in the passenger car segment.
Situation in 2004-2005
The Indian automobile industry produced 8.5 million vehicles in 2004-05. During the financial year 2005-06, Indian automobile industry produced more than 9.5 million vehicles. The growth in production was 15%. Sale of passenger cars and utility vehicles has grown at 12% CAGR over the last decade.
Two wheeler sales have grown at 11% CAGR during the last decade. Over the years sales of motor cycles has increased while sale of scooters and moped stagnated. With 5.82 million units sold in 2005-06(out of 7 million 2 wheelers), motorcycles replaced scooters as the preferred mode of transport. Visual Awakening (assessing the current environment)
Factors market is currently competing on: 1. Fuel Efficiency 2. Price 3. Size 4. Design 5. Driving Pleasure 6. Passenger comfort 7. Durability 8. Engine Power BHP 9. Engine efficiency 10. Interior looks 11. Interior upholstery 12. Latest features 13. Colour variants 14. After Sales service 15. Spare Parts 16. Safety features
Major Players: The below diagram shows the major players in the passenger car industry and